Bentley announces Alabama won't create health exchange

MONTGOMERY | Gov. Robert Bentley on Friday officially told the federal government that Alabama won't create its own health insurance exchange and won't expand Medicaid.

By Dana BeyerleMontgomery Bureau Chief

MONTGOMERY | Gov. Robert Bentley on Friday officially told the federal government that Alabama won't create its own health insurance exchange and won't expand Medicaid.In two sentences, Bentley notified Health and Human Services Secretary Kathleen Sebelius of his choice made earlier this week.“This letter serves as official notification that Alabama will not be setting up a state-based health insurance exchange, nor do I intend to pursue a partnership exchange,” Bentley wrote. “I also do not intend to expand Medicaid under its current structure.”Friday was originally the deadline to inform Washington of Alabama's intentions concerning a health insurance exchange under the 2010 Affordable Care Act. A health insurance exchange is a system for the uninsured to search for health insurance tailored to Alabama.Sebelius extended the deadline for states to notify the government of their plans to Dec. 14, which is also the application deadline. States also may choose to partner with the federal government in a federally created exchange.The Department of Health and Human Services says it will certify state plans by Jan. 1.Republican governors had asked Sebelius to extend the Friday deadline.“We are confident governors will have enough time to decide whether they want to establish an exchange, work in partnership with the federal government or have a federally facilitated exchange in their state,” Sebelius wrote. “We look forward to working with governors as we continue to implement the law.”Her letter was addressed to Virginia Gov. Bob McDonnell and Louisiana Gov. Bobby Jindal. Jindal is the new chairman of the Republican Governors Association, which met this week.A state exchange, which would have to operate under federal rules, will be too expensive, Bentley said. The governor estimated that a state exchange would cost between $30 million and $50 million a year.Democratic House Minority Leader Craig Ford of Gadsden earlier this week issued a statement after Bentley had announced his intentions not to create a state exchange or expand Medicaid. “It is very disappointing that Gov. Bentley has chosen to hand over control of the state's health insurance exchange to the federal government,” Ford said. “Because the governor has refused to follow the law, the federal government is going to set up the exchange anyway and without any input from the people of Alabama.”Ford said Bentley's decision is political. “The governor's decision is not about making the right choice for the people of Alabama,” Ford said.